The NSW government will provide additional financial support to help people affected by the New Lambton landslip in Newcastle.

An independent geotechnical report has confirmed it was the largest landslip in Australia and was a natural disaster following two days of intense rainfall last May.

The NSW Reconstruction Authority will from May provide funding for eligible residents directly impacted by the landslip to assist with alternative accommodation for up to 12 months, adding to previous assistance.

“This rental assistance will take the immediate pressure off New Lambton residents while we work alongside them and the City of Newcastle on the next steps for recovery,” Recovery Minister Janelle Saffin said.

“There is no quick fix, but we’re committed to sitting at the table with the community and council and to navigate these challenges together.”

The Newcastle council said last month it would continue to advocate for financial support for residents facing rising housing costs once insurance-funded temporary accommodation was no longer available.

The council says the geotechnical report, released last month, shows the landslip area remains unstable, is still sensitive to heavy rainfall and continues to pose risks to property and infrastructure in and around the danger zone.

“Near neighbours are reporting increasing concern regarding potential expansion of the landslip, damage to their properties, fear of future evacuations, rising insurance premiums and significant reductions in property values,” City of Newcastle CEO Jeremy Bath said.

The report finds impacts on multiple properties, with 16 currently evacuated and damage to sewer, stormwater, power and telecommunications assets.

Work to restore the site to its pre-landslip condition is anticipated to cost more than $130 million, according to preliminary estimates prepared by consultants.